Market to witness significant growth, owing to increase in use of flavoring ingredients in bakery & confectionery items such as ice creams, desserts, smoothies.
According to a new report published by Allied Market Research, titled, “Flavors and Fragrances Market by Type,” the global Flavors and Fragrances Market size was valued at $28.1 billion in 2019, and is projected to reach $35.9 billion by 2027, registering a CAGR of 4.7% from 2021 to 2027.
Natural flavors have the potential to change the business landscape in the overall Flavors and Fragrances Market. Changing consumer preferences toward natural flavors and fragrance gave rise to awareness about the functional health benefits in the use of natural and organic flavors. The demand for clean label food ingredient is increasing. As the artificial flavors cause several mild as well as severe allergies, especially in children, parents mostly prefer to buy natural flavor foods & beverages. Hence there is growing number of manufacturers switching to both natural colors & flavors to avoid the problem associated with chemical reactions.
Increase in demand for ready-to-eat meals & fast food is a key driver for the food flavors industry across the globe. Moreover, innovative technologies, introduction of new flavors, and heavy inflow of investment in R&D activities are the other factors that supplement the growth of the food flavors market. There is an upcoming trend of using natural flavors owing to rise in health awareness. Furthermore, high demand for flavors across European countries to produce commercialized clean label or green food products that are free of additives and other harmful chemicals has propelled the growth of the natural flavors market.
The global coronavirus pandemic has created a number of challenges for exporters in the developing and developed countries. Challenges for engaged stakeholders in the flavors and fragrance marker are likely to prevail owing to widespread restrictions across the globe. Supply chain disruption, lack of availability of worker, complete lockdown and curfew practices globally has affected domestic as well as international production of flavors and fragrance products, which, in turn, hampers the growth of the overall market. Thus, the outbreak of COVID-19 has negatively impacted the Flavors and Fragrances Market in 2020, as sales of companies have reduced and operations have been halted.
Over the next five years, demand for natural flavors is expected to grow strongly. Customers prefer to use natural products that are less harmful and have minimum side effects.
Further, manufacturers are anticipated to use natural fragrance ingredients in their skin care and hair care products to satisfy consumer needs. Many big players in the market are planning to invest big budgets in an effort to promote natural aspects of their flavors and fragrance products.
